IMF,Ghana begin talks to renegotiate monetary policy deal

The International Monetary Fund has begun talks with Ghanaian government over a possible renegotiation of its Programme with the Fund. The talks which begins on Thursday will last for about ten days follows a call by for a renegotiation of the programme to help create some fiscal space for the newly elected government. This week’s …

The International Monetary Fund has begun talks with Ghanaian government over a possible renegotiation of its Programme with the Fund.

The talks which begins on Thursday will last for about ten days follows a call by for a renegotiation of the programme to help create some fiscal space for the newly elected government.

This week’s meeting is a prelude to the team’s next review of the program.

The IMF in April 2015 approved a three year programme for Ghana worth 918 million cedis to help put the economy of the West African country back on track.

Senior Minister Yaw Osafo Marfo believes the meeting will afford the two parties the need to readjust the programme following a change in government.”

“They are coming early February for discussion and subsequently for the review before our budget is read in March,” he said.

From our view the programme must be reviewed because most of the targets have not been met in terms of deficit which is around 8 and 9 percent instead of 5 percent.

Some Economic Analyst including a Senior Lecturer at the Economics Department of University of Ghana Dr Eric Osei Assibey had cautioned government to tread cautiously in renegotiating the programme.

“This could affect donor Confidence if we do not tread cautiously” he warned.

 Disbursement

Ghana has so far received 464.4 million so far under the programme to help put the economy back on track. The Board of the Fund is expected to approve the next tranche of the fund after a successful review later this month.

 

Read Full Story